Asiamet Resources Share Discussion Threads

[dorset64] 16/8/2023 12:42

Decent sensible post Mostyn, I would add is that in respects to Beutong, and if the Chinese do buy or Partner it, I wouldn't worry at all about a permit as the chinese/Indonesian parties are working ever closer with each other. Only other point is that the bank won't be funding 100% of the build costs or anywhere near it imo as Asiamet will, and ate lining off take deals thatwould involve up front payments that would cover a decent percentage of those costs.All imo your honour.

[mostyn] 16/8/2023 11:59

The chart is looking good with the 50 day MA about to cross the 200 day MA. If the price drops another 0.1p it would be back in buying range again, although whether investors will wait that long is anyone's guess.

[mostyn] 16/8/2023 09:50

If a bank is going to lend Asiamet any money, they are going to want to be sure they will get their money back with interest. This doesn't just relate to the current price of copper/gold, but what they expect over the next 5-10 years depending on the length of the loan. The situation today is far different to 2019. Who then was highlighting a potential copper shortage in the future on the scale of today.

If TM is to be believed, there is plenty of interest in the BKM project, and even in Beutong which is not directly bank related, and any such interest is likely to mean that the banks will not have to stump up the full amount shown on the FS, so the risk is shared. In the unlikely event that Asiamet can't get the project financed it seems very likely that someone else will look at the project/company as a whole.

If one takes the view that the whole idea of a future copper shortage is nonsense, and companies/countries will not be scrambling to secure supplies of necessary resources (note it's now on the US critical minerals list), then the arguments above don't apply.

From an investment point of view the market doesn't see Beutong as an asset (and assigns no value to it), even though it's a significant asset/resource on a global scale, and if it really does (as Asiamet states) have huge exploration upside, then it's looking like a world class resource. The company really does need to clarify the status of Beutong in relation to the local situation, or JV the project in order to get the market to value it.

TM mentioned company valuations for Asiamet running to the hundreds of millions or even billions. We are a very long way from that at the current price, and unless we can get BKM financed, and more importantly for that sort of valuation get Beutong into the equation we are going to stay that way. From a shareholder perspective, a decent bid for the company, or corporate action of some sort, is likely to the the best option for early share price appreciation to the sort of level many on here will want.

[bradshaw980] 16/8/2023 05:26

OK worst case scenario banks won't lend as the copper price today is too low (potential copper price after ramp up is more important) or they simply won't lend as the project is not robust enough. That means we get taken out on the cheap imho by a company that looks forward and not backwards like yourself LoL.Also banks will take into account the premium over spot you get for selling grade A cathode, plus the considerable upside already proved at BKZ. Plus there is an extremely attractive gold and silver target already with world class assays put to market! Plus, imho, you're a bit of a nob head, but have a nice day regardless!

[adw198] 16/8/2023 01:12

Yes I agree better than 2019!and 2020. But (and apologies for repeating myself here) we still have to explain why nobody wanted the FS19 in 21/22 when copper was way above the 3.30lb used in the first study - it spent over a year above $4. That was when I invested here because those tables showing the returns at those copper prices were excellent. Especially with all the value engineering enhancements to come (which came to nothing).

As you’ll be aware this time we’ve used 3.98 and it’s currently below that. I don’t think it’s credible that a bank would lend when there’s such a gap, far too much risk against the copper price. And whilst we’re probably all copper hulls if the banks were so confident why wouldn’t they just go long copper than risk their money on a junior explorer?

I’m about as far from an expert in project financing as there is, so hopefully they’ll pull a rabbit out of the hat but it just seems we’re going to have a real difficulty getting the money. Plan A was a JV and bank loaning for the rest and that went nowhere. Dorset can keep insisting DOID actually wanted to go ahead but we turned them down but a) he won’t dare to tell us where he heard this and b) we all know it was from Telegram / Sasha which is a discredited source.

Even allowing for some biased views on here I’m surprised there’s not even the merest consideration of it not happening in the current environment - although you personally have said it’ll ne a struggle so fair enough. I suspect we’ll need a significantly higher copper price to entice people to fund this but as I say happy to be proved wrong.

[p_j_s1] 15/8/2023 22:00

I agree that it is not going to be easy to put together the funding. But you have been arguing that the present FS is less attractive than the initial one. In my view that is not the case because at $2.80/lb.. the Cu price was so low at the time that there was no hope of getting funding.. I posted at the time that the only option was to cut spending and wait for the Cu price to recover. The prospects may not be great now but they are much better than they were in 2019 (IMHO).

[adw198] 15/8/2023 19:56

I accept that. But what was it during DOIDs 9month due diligence? It was 4.50lb and we couldn’t find a partner on study that was priced at 3.30.

Ultimately the project isn’t as robust as some try to claim - evidenced by the fact our supportive shareholder backed away and the void was filled by…Nobody

[p_j_s1] 15/8/2023 18:21

Just to set the record straight (again). The Copper price at the time of the release of the initial feasibility study in June 2019 was around $2.80/lb not $4.50. It had been at that level for at least a year and stayed below $3/lb until late 2020. That is why nobody was interested in funding the project at that time.

[adw198] 15/8/2023 18:00

Ok to be entirely precise they walked away from the JV deal. They spent 9months doing DD and then didn’t complete the deal. The RNS is perhaps the best guide to their interest in the project level investment.


“Simultaneously major changes in the global geopolitical and macro-economic landscape have negatively impacted market sentiment and inflation is challenging many resources projects globally. Against this backdrop, DOID has advised that its preferred approach is to progressively support the Company through to key development and financing milestones”.

I agree DOID will take their next stake imminently. I disagree we’ve got a viable chance of easing $230m to build a mine - I suspect DOID will take us out at some point which is why I’m still here.

Yes I stand by my full analysis of the IRR. Better not to NEED $4 copper imo. All other views welcome - including those who predict 20-30p as a share price ;)

[dorset64] 15/8/2023 17:47

ADW, where did you read that ‘DOID walked away from a deal’?

Thyea didn’t walk away, far from it and instead of doping a deal at that price and when, I believe, DOID asked to do a deal based upon the share price and Asiamet said no, it was effectively Asiamet that walked away if anyone did, but the reality is no-one has walked away.

When Asiamet rejected their offer DOID then went and paid £millions for more shares, whilst at the same time backing the company with cash in order to get the updated BFS finalised, along with the designs of the site. In turn they have backed Asiamet, not walked away like you keep seeking to spin it.

Asiamet will need money at some point and I am 99% certain that when that time comes, it will be DOID putting their hand in their pockets again, albeit at a higher price than when they could had a few months ago.

DOID are the majority shareholder, do you honestly believe in your own weird and confused wisdom that, as largest shareholder they will let Asiamet dilute them to high heaven by having an open offer placing or, far worse, letting Asiamet go to the wall.

My feeling is as soon as someone shows a lot of interest not only in this one project but the company as a whole, they will immediately put their coffers in as they, like you & I would make a lot of money by any confirmed interest or Asiamet confirming finance.

As for saying openly an IRR of 19% is far better for Asiamet & its shareholders than one of 21%, well, you really do need to wobble your head a bit!!

[bradshaw980] 15/8/2023 17:37

They must be the first company in history to 'walk' away whilst simultaneously obtaining 24.2% of a company. Maybe they should ditch mining and get into Las Vegas magic shows.

[adw198] 15/8/2023 17:32

DOID walked away from a deal having been the preferred bidder form 5 in the data room. They don’t fancy it at the moment

[bradshaw980] 15/8/2023 17:07

Sometimes you've just gotta take your L's like a man bruv. You've said for months they won't get financing, when a senior executive at Orion said recently more money is avaliable for copper development plays now than in the last 5 years. So it's getting easier not harder to get financing ROFLMFAO....I predict yet another L for you shortly bruvs

[bradshaw980] 15/8/2023 17:01

Again you're back to this couldn't find a partner nobody would touch it BS. DOID have spent several million being our 'partner ' you complete and utter melt. I hope they get approved for finance just so I can call you a melt again LoL

[adw198] 15/8/2023 16:55

My concern isn’t what the IRR says in isolation, it’s the fact that the previous study couldn’t find a partner despite being similar ish using 3.30lb copper even when copper was actually 4.50lb. So I’m personally concerned about where we’re going to find $230m.

As you acknowledged earlier this is a hugely high risk proposition. The 20-30p ship has long since sailed and a bit of realism is required - which starts with how we survive the next 6months.

[adw198] 15/8/2023 16:04

Nobody needs to listen to me. I can’t remember exactly what I said re the IRR but my underlying view was that new project would be less attractive than the previous one (that nobody wanted any part of). I think that analysis was correct - they used a 15-20% higher copper price which boosted the IRR.

[bradshaw980] 15/8/2023 15:37

Why should anyone listen to you when you were banging on for months saying the IRR on the DFS would be lower than 19% ? Your reputation is in tatters m8 !!

[adw198] 15/8/2023 13:31

They’ve got 3 months left to exercise that option as I read it. I suspect the money will have run out by then, hence expecting it to happen imminently. If they don’t wish to take the next tranche then we will indeed need to raise funds another way. This isn’t money to build a mine but simply to keep the lights on whilst we try to find the big money.

[dorset64] 15/8/2023 11:47

Bag, there won't be a fundraising as DOID have the option to take another £5m before that ever happens.

[bradshaw980] 15/8/2023 09:19

The company has stated they're trying to put a funding package together. Let's wait and see if they can do it or not. None of the armchair experts here know what the package may look like or who may be involved and in what quantities. Plus we don't know progress on Beutong, which could be a safety net if BKM fails. A lot can change in 4/5 years, new local officials etc etc etc......got a sneaky feeling more drilling will take place there at some point.....and if the high grade core is what many think it is then the drill assay could send the market bonkers!All imho DYOR!

[adw198] 15/8/2023 08:37

Yeah nothing Dorset has said it’s wrong but it’s based on some fairly wishful thinking, without any consideration of the very significant risks and challenges. We’re back to the same issue of the here and now, getting a $230m mine funded and built with next to nothing in the bank. Our largest ‘supportive217; shareholder have had the chance to buy another 15% ish of the entire company for $5m and for whatever reason haven’t yet taken the option. I think it’s imminent because without it we’ll need alternative funding but it does trouble me why they haven’t snapped up their next $5m buy in. Nobody has done more due diligence on the project than them yet they don’t seem in a rush to get more involved.

Beutong is correctly not priced in because the available information suggest it’s not going to get a permit. That’s based on the fact that since several thousand people
Protested about it in 2019 nothing has happened there. And even if I’m wrong and we’re just mothballed it by strategy (despite saying the opposite) then imagine the time and money required to just get to a FS - let alone building that.

[dorset64] 14/8/2023 15:35

Based on a sum of parts and to what is currently know, 5-10p often mentioned.

This would depend on financing if going it alone with a smaller % partner, or Asiamet retaining only a small % themselves % a ‘larger’ partner, or a full sale of the BKM/KSK areas. The third option to affect the price would be if someone came in and offered to buy Asiamet, ie. All of the projects including Beutong instead of just the KSK area.

Add also in to the mix if a full VHMS is to be anywhere near proved that extends to the whole area not just BKM, which at present appears more than likely, then it 'could' be many many multiple of those prices but that is unknown at present, albeit very likely imo.

Even though the IRR is decent at above 20% what you have to take in to account is that this is just for the first start-up project ONLY, and with the costs of infrastructure being covered by this 1st project, in theory, the other areas close by would demand a far higher IRR & re-sale value than the current one as a lot of the start up costs, infrastructure, roads, machinery, heavy plant, staffing costs and power would have in the main already been paid for by this first project.

Then on top of this, if a full buy-out of asiamet was to ensue, then you also have to add in all the other KSK areas & projects but also then to include the huge Beutong which, on its own is widely expected to be 4-6 times larger than the whole KSK area, but again that is yet, like most of the areas, yet to be fully drilled, discovered or acknowledged in the share price.

Genuinely feel this is now turning the corner and if/when copper prices take off as per the commentary then the final price could well be far above 20-30p should all the ducks line up in the coming years.

All in all, and forgetting the past years of management failure I feel by bringing in and giving the ‘day-to-day217; reigns to an experienced mine builder, Asiamet now find themselves by default, to be in the perfect place at the perfect time to be opening a precious metals mine in the very near future and the potential is, as has been said, absolutely huge given its current £25m m/cap.

All imo.